I’m looking for serious answers to understand the mentality. Please avoid the snark. I know it’s low hanging and tempting but I’m pretty sure most, if not all, of use here on Lemmy “get it”.
I just can’t get out of my head how absurd it is that we, in the U.S. anyway, put so much of the tax burden on working class folks instead of those most benefiting from our economic system.
It seems to me the standard deduction should be at least the median personal income (~$40k) if not the mean(~$60k) with progressive tax brackets adjusted to cover costs thereafter and possibly a supplemental wealth tax.
But I’m not an economist so trying to understand why I’m wildly wrong and this would be a terrible idea either from an economic perspective or from a political perspective.
IMO the most valid argument is that there are way more people making a middling income than people making a high income, so any reduction in taxes for those people would need a proportionally much larger increase in the upper brackets to maintain the same level of tax revenue, if it’s possible to make the numbers work at all depending on how much of a tax break you want to give. The minimum amount to be taxed is set based on where the tail end of the bell curve is, the number of people who are poor enough not to be taxed is small.
Of course there’s also the fact that the richest people don’t get their money from having a job at all, it’s all in investments, so messing with income tax rates doesn’t even affect them.